PETALING JAYA: Amendments to the National Wages Consultative Council Act would lead to fairness in wages and strengthen protection for apprentices, says Federation of Malaysian Manufacturers president Tan Sri Soh Thian Lai.
“Apprenticeships allow employers to develop workers with the specific skills needed for their industry, closing the skills gap and ensuring that the workforce is well trained and aligned with the company’s requirements.”
However, he said there are concerns that this would lead to increased costs and be a financial strain on industries relying heavily on apprenticeship, adding that this could end up as a disincentive for companies.
“This is due to employers incurring other costs during the apprenticeship programme with the coaching or mentoring,” Soh said, also citing the need to develop training plans, tracking progress and ensuring compliance with regulatory as well as certification requirements.
Last Tuesday, the Human Resources Ministry tabled the amendments for their first reading at the Dewan Rakyat.
In a statement, the ministry said the amendments would seek to ensure that apprentice contract workers would be paid in accordance with Malaysia’s minimum wage.
It pointed out that under the first Minimum Wage Order (MWO) in 2013, the payment of the minimum wage was not mandatory for workers in apprenticeship contracts.
As such, the ministry said the amendment would give private sector workers their rights and due protection.
Under Budget 2025 announced last Friday, the minimum wage will be increased from RM1,500 to RM1,700 starting February next year.
Malaysian Employers Federation president Datuk Syed Hussain Syed Husman said the amendments to the Act would ensure that apprentices get their rights and due wages.
“Apprentices were excluded from the scope of the first MWO in 2013.
“The current MWO excludes apprentices from the payment of the minimum wage.
“Thus, they may be paid lower than the current RM1,500 minimum wage.
“We hope the inclusion of apprentices in the Act would encourage more to take up real workplace practical training, which will normally lead to full-time employment offers upon completion of apprenticeship,” Syed Hussain said.
As such, he said the amendment is good for employers, workers and unions.
SME Association of Malaysia president Chin Chee Seong said the practice of hiring apprentices is more common among large businesses and multi-national companies.
“They have the budget for apprentice programmes.
“Generally, SMEs (small and medium enterprises) don’t have the financial capabilities for these programmes.
“Still, this amendment is good overall for apprentices,” he said.
Prof Dr Rozanah Ab Rahman, the deputy dean (business and economics school) of Universiti Putra Malaysia, said apprenticeships offer a pathway to skills acquisition.
As such, she said the minimum wage requirement for apprentices plays a crucial role in shaping the employment and vocational training landscape.
“It can affect the financial stability of apprentices, especially when previous allowances were insufficient to meet living costs,” she added.
Prof Rozanah said there remains a need for fair compensation for apprentices and paying them the minimum wage would be a recognition of their contributions.
